How Are Savings Plans Different from Investment Plans?

If you want to build a reinforced financial foundation for yourself and your loved ones, knowing of savings plans and investment plans is extremely crucial. However, they’re not the same thing and work in totally different ways.

While each of these plans allows you to have a more comfortable financial future, it’s necessary to know the fine lines of differences between the two to be able to know where and when is best to invest for the maximum returns.

The primary difference between investment and savings plans is the level of risk required. Although savings plans offer you lower returns with time, they are associated with literally no risk. On the other hand, investment plans may provide you great returns, but contain a significant risk.

With that said, let us take a look at the key differences between savings and investment plans. Additionally, you’ll also know about the most prominent investment and savings plans available in India that help you build long-term wealth:

Savings Plans vs Investment Plans – In A Nutshell

In simplest terms, a savings plan allows you to accumulate money to generate a huge corpus of money that may prove to be helpful for future requirements. They are ideal for long-term goals as they allow you to make sure that you have the required money at the right time in the future.

The premiums you pay towards these savings plans are deposited in a low-risk bank account. On the other hand, investing is just like putting money in a savings plan, provided that you’re looking to gain higher returns in exchange for greater risk.

A typical investment plan may utilize your premiums in market-linked investment bodies that carry a certain level of risk. If you’re planning to choose an investment policy, then it is recommended to invest your capital for the long term to gain the maximum benefits.

Top Savings and Investment Plans in India

1.TATA AIA Wealth Maxima

With the help of the TATA AIA Wealth Maxima Unit Linked Insurance Plan, you can invest for a tenure as minimum as 30 days. Whether you’re a man in his mid-30s or a young working professional, this plan is certainly a great choice for you, especially if you want to gain high returns in a short time.

This plan also comes with a maximum maturity age of 60 years, and also allows you to choose from several different policy terms. Whether you want to invest for 10 years, 15 years, or even 20 years, the plan offers everything under the same hood.

It even allows you to choose your preferred fund options to make sure that you gain the most prominent returns as per your financial preferences.

2.Max Life Monthly Income Advantage Plan

The Max Life monthly income advantage plan is a comprehensive non-linked, participating, and individual insurance savings plan that helps you easily accumulate a huge sum of money in the form of a financial corpus to help your family continue sustaining a proper lifestyle in the event of your unfortunate demise.

This plan comes with a large number of unparalleled features that make it one of the most prominent savings plans available in India. Once you’ve completed the policy tenure, it will begin offering benefits in the form of fixed monthly income for at least thirty years.

Furthermore, the policy even promises to offer you numerous accrued benefits without paying anything extra such as a terminal bonus on the maturity of your plan. With such exciting benefits, you can easily make the most out of your policy.

3.Bajaj Life Insurance Capital Guarantee Solution

The Capital Guarantee Solution offered by Bajaj Life Insurance is a savings policy that allows you to invest your money in market-linked products and guaranteed upfronts that help you gain very good returns with only a minimal amount of risk involved.

This plan has successfully maintained its position as one of the best performing large-cap funds that offer you a return of 14% for an estimated timeframe of seven years. By making consistent investments in this plan, you can easily accumulate a significant amount of wealth to help your family live a comfortable life and fulfill all their dreams.

4.Canara HSBC Oriental Bank of Commerce – Guaranteed Savings Plan

The Guaranteed savings plan offered by Canara HSBC Oriental Bank of Commerce Life Insurance offers you assured benefits on the maturity of the plan, provided that you’ve paid all the premiums towards the policy. It offers you a life cover for the complete term, while you only need to pay premiums for a limited time.

Additionally, this plan also provides you enhanced protection to your family through lump sum benefits in the event of your unfortunate demise. There are even guaranteed benefits offered by the plan on its maturity.

You can even choose a preferred term as per your preferences and select from multiple policy term options. There’s even a high premium booster that allows you to enjoy additional benefits in return for higher premium commitments. It also acts as a greattax-saving plan.

Final Words

To attain complete financial security in the future, you must make sure you start investing and saving your capital as soon as possible. By accumulating your funds consistently for a long time and investing them in the right assets, you can easily generate a huge corpus for a bright future.

There are several different types of investment and savings plans available in India as per varying requirements. To choose the one that fits the bill for you, make sure you assess your financial requirements and capabilities beforehand.

Lastly, make sure you also have a look at the various options listed above. These plans are aligned as per the ranging needs of users that help you gain the most out of your savings or investments. 

Christophe Rude
Christophe Rude
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